Representational file image.
| Photo Credit: Vibhu. H

The Cabinet Committee on Economic Affairs (CCEA), which met here on Wednesday, has decided to increase the minimum support price (MSP) for copra. The new MSP for milling copra will be ₹ 11,160 per quintal — an increase of ₹300 per quintal than the 2023 season. The new MSP for ball copra will be ₹12,000 per quintal — an increase of ₹250 per quintal. The rate will be effective from next year.

Briefing reporters after the meeting, Union Minister for Information and Broadcasting Anurag Thakur said that although copra prices have fallen globally, the Narendra Modi government had decided to provide an MSP of at least 50% higher than the production cost. “Accordingly, the copra MSP has been increased by ₹250-300 per quintal for 2024 season,” Mr. Thakur said.

Explained | Will a hike in MSP help farmers?

According to a government release, the new rates will ensure a margin of 51.84% for milling copra, and 63.26% for ball copra. Milling copra is used to extract oil, while ball/edible copra is consumed as a dry fruit and used for religious purposes. Kerala and Tamil Nadu are major producers of milling copra, whereas ball copra is produced predominantly in Karnataka.

The Centre’s statement said: “In the last 10 years, the Government has increased MSP for milling copra and ball copra from ₹5,250 per quintal and ₹5,500 per quintal in 2014-15 to ₹11,160 per quintal and ₹12,000 per quintal in 2024-25, registering a growth of 113% and 118%, respectively.”

“A higher MSP will not only ensure better remunerative returns to the coconut growers but also incentivise farmers to expand copra production to meet the growing demand for coconut products both domestically and internationally,” it added.

In 2023, the government has so far procured over 1.33 lakh metric tonnes of copra at a cost of ₹1,493 crore, benefiting around 90,000 farmers, the release added.

“The procurement in the current season 2023 indicates a rise of 227% over the previous season (2022). National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and National Cooperative Consumers’ Federation (NCCF) will continue to act as Central Nodal Agencies (CNAs) for procurement of copra and de-husked coconut under Price Support Scheme (PSS),” the release said.

Image for representation purpose only.
| Photo Credit: K.K. Mustafah

Considering the huge increase in the prices of fertilizers in global market, the Centre has ‘doubled’ the fertilizer subsidy for this rabi season. A meeting of the Union Cabinet here on Wednesday approved a subsidy of ₹51,875 crore to Nitrogen (N), Phosphorus (P), Potash (K) and Sulphur (S) for Phosphatic and Potassic (P&K) fertilizers for the ongoing rabi season.

From the budget estimate of ₹21,000 crore of nutrient-based subsidy, the amount has been more than doubled, said Union Minister for Fertilizers and Chemicals Mansukh Mandaviya. Briefing reporters after the meeting, he said the Centre revised the subsidy keeping the increasing market prices in mind.

‘Highest so far’

He said the total fertilizer subsidy for the rabi season, including ₹80,000 crore for urea, would be ₹1,38,875 crore and for both the rabi and kharif, the subsidy amount would be ₹2.25 lakh crore. “This is the highest subsidy so far. Last year it was ₹1.65 lakh crore,” Mr. Mandaviya said and added that as commercial prices had doubled due to the Ukraine-Russia conflict and the logistics issues due to pandemic the Centre decided to double the subsidy component too. “Increased prices would have burdened the farmers. We have ensured that there will not be any increase in the fertilizer prices in the next six months,” he said.

Also Read | Reforming the fertilizer sector

Mr. Mandaviya said a bag of Diammonium Phosphate cost ₹1,350 and it would have been cost ₹2,650 without subsidy. On urea, he said, the subsidy was around ₹2,400 per bag as a bag was being sold for about ₹266 instead of the market price, which was ₹2,700.

He added that the Centre had taken up measures to increase production of urea in the country. While the requirement was 350 lakh metric tonnes (LMT), the production in the country was 250 LMT. He said four new plants were coming up and nano urea would also replace the use of urea slowly. Mr. Mandaviya said the country had enough stock of fertilizers for this season and reports about farmers queueing up to buy fertilizers were blown out of proportion.

Also Read | No shortage of fertilisers in the country, says Mandaviya

The Centre said the move would help the farmers. “This will enable smooth availability of all P&K fertilizers to the farmers during rabi 2022-23 at the subsidised / affordable prices and support the agriculture sector. The volatility in the international prices of fertilizers and raw materials has been primarily absorbed by the Union government,” a government release said.

A worker arranges sacks of wheat flour inside a factory in Siliguri.
| Photo Credit: Reuters

The Central government has decided to restrict the export of wheat flour in order to curb the rising prices of the commodity and ensure food security of the most vulnerable sections of the society. The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi here on Thursday.

The government will accordingly amend the policy of exemption for the commodity from export restrictions or ban.

The Directorate General of Foreign Trade (DGFT) will issue a notification to this effect, a Government release said. The decision is taken against the backdrop of the Russia-Ukraine war. The Centre said both the countries are the major exporters of wheat accounting for around 1/4th of the global wheat trade and the conflict between them led to the global wheat supply chain disruptions increasing demand of Indian wheat. “As a result, the price of wheat in domestic market showed an increase. In order to ensure food security of 1.4 billion people of the country, the decision was taken to put a prohibition on export of wheat in May 2022,” the release said.

However, the Centre said, due to the prohibition on export of wheat, the demand for wheat flour has increased in foreign markets and its exports have registered a growth of 200% during April-July 2022 compared to the corresponding period in 2021. “The increased demand for wheat flour in international market led to significant price rise of wheat flour in the domestic market,” the release added.

“Earlier, there was a policy not to prohibit or put any restrictions on the export of wheat flour. Therefore, a partial modification of the policy was required by withdrawing the exemption from ban/ restrictions on export for wheat Flour in order to ensure food security and put a check on mounting prices of wheat flour in the country,” the release added.